We all know that the world is digitized with more automated Apps to make our task easier. Similarly, after the arrival of Taxi Booking App, it made a revolutionary change in the Taxi business industry.

It made it easy and comfortable for the customers to hire a taxi by booking them online through Taxi Booking App of the company. Hope you all know about the Uber and Ola App.

Do you think this Taxi Booking App or the taxi dispatch software will benefit only the customers? No, it will help the drivers and the taxi business owners.   

A rigid App can be utilized by all the companies running the taxi business. In addition to the benefits to customers and drivers, It will assure the proper financial management for the owners by using the automated driver billing and payouts in the Taxi Booking App

In this article, we will see why all the taxi booking apps must have an automated driver billings and payouts.


Why use automated driver billing?

  • As I already told you in the beginning that nowadays everything is digitalized and automated features are evolving with these digitized Apps.  
  • The emerging Taxi Booking Apps indicate the same and most of the functions and features of the Taxi Booking Apps are automated to have effective Taxi Management.  
  • Similarly, the automated driver billing and payout option is to effectively manage your Taxi business and handle all the financial concerns
  • The Booking App will assist the owner of the business and the drivers to view the requests from the customers,  track real-time scenarios, use of GPS helps to track the real-time events. It also helps to analyze the reports
  • It helps in calculating your profit in your Taxi business. Your profit depends upon your commission from the drivers.
  • Just think how it will be if the Taxi Booking App is not having automated driver’s billing and payout options, the following concerns will arise in the absence of this feature.


1. Difficulty in commission procurement

  • If the automated billing feature is missing in the App, collecting the commission from the drivers is a tiring job.  
  • Let us assume your business runs with 5 to 8 drivers. Collecting the commission from them is quite possible
  • Just think if the count reaches more than 100 drivers, then is a hectic job to collect all the commissions from all the drivers.
  • This traditional way of collecting the commission is highly challenging because when the count reaches to a huge number it is difficult to handle manually to collect the commissions


2. Difficult to implement any incentive programs

  • Collecting commission alone is not the single issue to face when the automated driver billing feature is not present in the system. Another issue is with incentive programs for the drivers.  
  • Most of the taxi companies have a rigid structure for the incentives for the drivers.
  • In this traditional method, it is very difficult to handle the effective incentive plan
  • For example, the driver needs to pay the owner $100 commission and $25 is his incentive then the total commission the driver needs to pay is $100-$25=$75
  • This calculation looks easy when there are only a few drivers in your company but it is going to take time to calculate if there are a huge number of drivers.  The whole process will be a time-consuming process.
  • This automated driver billing and payout feature will make the work simple for taxi companies.


3. Increased paperwork and risk of errors

  • If the traditional method is made use to calculate the incentive or collecting the commission, you need to maintain the record of the drivers which includes a lot of paperwork.
  • As I already told that the number of drivers increases the work becomes hectic and tiring, the same happens here also. The paperwork will get more difficult to handle in this situation.
  • If you do the paperwork manually, there is a chance for human error which will directly affect your business.  
  • To overcome all those concerns, you can make use of automated driver’s billing and payout feature.


How does it work?

The taxi booking app will have a driver’s wallet and driver settlement.

1. Driver wallet

Driver wallet is a feature in the taxi booking app to collect the commission and incentives of the drivers. Each driver will have a driver’s wallet.

The functioning of the driver wallet has 2 options and the convenience of the owner is considered for the options.

Option 1

Here in this option, the Driver has to load the wallet with a certain amount. For example, Driver X  loaded $1000 in his wallet.

Once the ride finishes, they will receive the commission automatically.  The driver wallet will be verified as per the owner’s convenience like the end of day or week or month.

Imagine if the total commission to be paid by the driver is $500 then at the end driver’s wallet balance will  be $1000-$500=$500

Suppose the driver’s commission to be paid to the owner is $1500, i.e the amount is more than the wallet balance then the wallet balance at the end will be $1000-$1500=-$500. Here the negative sign shows that the driver’s commission is still pending  $500 to the owner.

Option 2

Here in this option, the driver need not load the wallet in the beginning. The initial wallet balance will be zero.

After each ride, the commission will be taken at the month-end and suppose the total commission is $1500 at the end, the wallet balance will be -$1500.

The driver should load the total commission amount to his wallet to maintain the initial zero balance.

To say in simple words, the former option is similar to prepaid service and the later one is postpaid service.

2. Driver settlement

This feature consist of 2 sections

  1. Payout
  2. Pay in


Payout is paying out the total amount to the driver after analyzing all the factors like penalty, commission, incentives at the end.

Pay in

Here the driver should pay the amount to the owner after analyzing all the factors at the end.  The main use of this driver settlement is the proper management of all the plans and it can be executed in an effective way. It helps to manage the finances in your own way.

In this App, the customer may pay the cash or use the card to pay the fare. When it is cash payment, the driver will get the money in hand. whereas in card payment the money will directly be paid to the taxi company.

If it is cashless payment, the total commission amount the driver needs to receive will be in the payout section and the driver will receive the amount at the end of the cycle.

Admin can control the flow of money by using this driver settlement feature.

Suppose the drivers have to pay the outstanding amount to the owner then the admin can allocate the cashless payment rides to those drivers and those outstanding amounts will be taken automatically.



Hope in this article you will find why all the taxi booking apps must have an automated driver billing and payout and we have seen how efficient the billing system overall. For your better understanding, we have also discussed how the automated driver billing and the payout options work in Taxi Booking App.

To know about how the feature works for your Cab business, Try a Free Taxi Dispatch Software Demo

Payment Gateway is the most important feature of any business App because you cannot run a taxi business without having this option integrated into your taxi booking app. Get an Insight into why payment gateway integration is important in Taxi App.



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